The research highlights the growing financial pressures that families across the UK are facing, especially as everyday expenses like childcare, technology, and extracurricular activities continue to rise. This surge in child-rearing costs is contributing to broader demographic shifts, with some economists linking the increase to the UK’s record-low birth rates.
The findings shed light on the financial commitments required for modern parenting, particularly as households grapple with inflation and the escalating costs of living. From the cost of essential items to the increasing price of enrichment activities, raising a child in today’s economic climate is an ever-growing financial challenge for families.
Rising Costs for Child-Related Expenses
According to Moneyfarm’s analysis, the overall cost of raising a child in the UK has escalated dramatically, with the total cost now at £249,000, up £46,000 since 2022. The increase in expenses spans a wide range of categories, with some costs rising at double the rate of inflation. The most significant jump has been in the areas of technology, extra-curricular activities, and childcare.
For instance, spending on technology, such as laptops, smartphones, and gaming consoles, rose by 23% from 2023 to 2025, bringing the total technology-related expenditure to an average of £6,125 for children between the ages of six and eighteen. This trend highlights how the digital age is contributing to increased financial demands on parents, with many children needing devices for both education and social interaction.
Extra-curricular activities have also seen a sharp increase, rising by 19% over the same period. Parents are now expected to pay more for activities like sports, music lessons, and social development programs. Sociocultural activities, essential for children’s growth, have risen by 12%, indicating how integral these experiences have become to family life.
The Financial Pressure on Teenage Years
The most expensive phase of child-rearing occurs during the teenage years, between the ages of 15 and 18. During this period, families spend an average of £65,016 on their children, a significant rise from £57,082 in 2023. This increase is largely driven by higher costs for personal care products, such as haircuts, beauty routines, and clothing. Spending on health and beauty items for teenagers has more than doubled in the past two years, reaching £1,182 annually.
This financial burden becomes particularly acute for families who also face rising childcare costs, with nursery bills alone reaching over £34,000 in the first three years of a child’s life. This figure reflects a 12% rise in costs since 2023, far outstripping the general inflation rate of 6% in the same period. As the overall cost of raising a child continues to rise, parents must increasingly juggle these significant expenses, often finding it challenging to keep up with the pace of change.
A Shift in Family Planning
These escalating costs have had wider socio-economic effects, including a sharp decline in the UK’s birth rate. In 2025, the fertility rate fell to 1.41 children per woman, the lowest level ever recorded in England and Wales. Economists argue that rising child-rearing costs are one of the main factors behind this trend, as many young adults struggle to afford the financial commitments required to start a family.
Chris Rudden, head of investment consultants at Moneyfarm, noted that the rising cost of raising children is “unprecedented.” Families are now forced to think more critically about their long-term financial capacity when considering whether and when to have children. This demographic shift could have significant implications for the economy in the coming years, as a reduced birth rate may lead to a smaller workforce and greater economic pressures from an aging population.
As the financial burden of raising a child continues to rise, experts are encouraging parents to plan ahead by saving and investing early to help mitigate these costs. With the outlook suggesting further increases in child-related expenses, families may need to reconsider their financial strategies to ensure both their own and their children’s futures are secured.
